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Mar 31
Paycom Q1 2025 Earnings Report
Paycom delivered strong Q1 2025 results, highlighted by solid revenue growth and expanding margins.
Key Takeaways
Paycom Software posted $530.5M in revenue for Q1 2025 with net income of $139.4M. Adjusted EBITDA rose to $253.2M and the company raised its full-year outlook on the back of increased automation adoption and margin expansion.
Revenue reached $530.5M, growing 6.1% year-over-year
Adjusted EBITDA increased to $253.2M, with a margin of 47.7%
GAAP EPS was $2.48 while non-GAAP EPS reached $2.80
Cash and cash equivalents rose to $520.8M with no debt on the balance sheet
Paycom
Paycom
Paycom Revenue by Segment
Revenue by Segment
Recurring and Other Revenues Revenue
CapyFin.comInterest on Funds Held for Clients Revenue
CapyFin.com Forward Guidance
For FY25, Paycom expects total revenue between $2.023B and $2.038B, recurring revenue growth of ~9%, and an adjusted EBITDA margin of ~42%.
Positive Outlook
- Raised full-year revenue outlook
- Recurring revenue expected to grow ~9%
- Interest income from client funds forecast at $110M
- Adjusted EBITDA margin projected at ~42%
- Momentum driven by automation and operational efficiency
Challenges Ahead
- Slight decline in interest income YoY
- Increased R&D and administrative costs
- Decline in GAAP net income due to prior year one-time benefit
- Cash used in financing activities exceeded $1.4B
- No international revenue segment reported
Revenue & Expenses
Visualization of income flow from segment revenue to net income